Enterprise Relocation Tide? Where Will The Textile Enterprises Travel To Southeast Asia?

The relocation of manufacturing enterprises is a normal phenomenon, and the scale does not affect controllable.


In response to recent public opinion about the relocation of Chinese enterprises, especially the manufacturing industry, Meng Wei, spokesman for the national development and Reform Commission, responded 16 days ago that from the current situation, the scale of China's manufacturing industry relocation is not large, and that the impact of China's economic growth, industrial upgrading, labor and employment is generally controllable, and some of the relocation enterprises have returned to China.


Business move back tide


Over the past two years, a number of enterprises that have moved abroad have returned to China because of their acclimatization.

According to Hongkong's South China Morning Post, on July 12th, the Sino US trade war prompted some Chinese shoe factories to move to Vietnam. A shoe factory owner gave up a factory that invested 5 million yuan in just one year.

　　

Another Dongguan shoe factory owner invested 7 million yuan in a factory in Vietnam in 2015. Two years later, he stopped producing and sublet the factory. Vietnam is not as famous as China in terms of production capacity and labor efficiency, but also has to face increasingly stringent environmental requirements.


An executive at a Taiwanese equipment manufacturer said that the company moved many of its production from Guangdong to Hu Zhiming, and found it difficult to recruit and retain employees. "Now, the workforce is hard to stabilize, and the job market is very hot. Vietnamese workers are jumping about." As more companies enter Vietnam, the situation will be even more serious.


The main reason for many enterprises to move out


In order to circumvent export duties to Europe and the United States, the relocation of enterprises has not worked. On July 3rd, the US Department of Commerce taxed 456% of steel and aluminum for Vietnam, South Korea and Taiwan.


One of the main elements attracting Chinese enterprises to Vietnam is cheap and abundant labor force.


But when Chinese entrepreneurs went to Vietnam, they found it a sweet trap. Vietnam's population is close to one hundred million, and its labor force is abundant, but recruitment is not easy. At the beginning, compared with domestic wage costs, but in different parts of Vietnam, the government also requested an increase in 5-20% each year. At the same time, it is necessary to provide Chinese food or meal supplement. Overtime requires dinner and overtime. What is more unexpected is the employee's strike problem.


In view of this, the relocation of enterprises is not easy, and many factors need to be considered, including operation costs, industrial workers, supply chain matching, transportation and even manufacturing culture.


Manufacturing is the most important part of the future national strategy.


Since the reform and opening up, China's manufacturing industry has made remarkable achievements in the world. Its scale is large and its categories are complete. It plays an important role in the division of labor in the international industry. It not only contributes to the steady, healthy and sustainable development of China's economy, but also provides products with cheap products and inexpensive products for all countries in the world, creating huge market space for enterprises in various countries.


The development potential of the manufacturing industry is absolutely not inferior to that of IT and the financial industry, but the production tools of the manufacturing industry are much more complicated. For the textile industry, from upstream to downstream, from a drop of oil to a piece of cloth, there are many disciplines involved. At the same time, faced with the increase in production in the mainland of China in recent years and the increasing cost of tariff increase in the United States, the educated young generation of China no longer works in factories. Many small and medium-sized Chinese manufacturers have fled and failed, and China's low-end manufacturing industry is now facing the most difficult period.


Next, the national development and Reform Commission will continue to promote the high quality development of manufacturing industry with the relevant parties. The key is to give full play to the advantages of China's industrial system and domestic market, focusing on the following four aspects: deepening market reform, expanding high water level and opening to the outside world, enhancing the vitality of micro entities, releasing the potential of domestic demand market, striving to make up the short board of industrial chain, upgrading the industrial chain level, striving to build an international first-class business environment, and further enhancing the attractiveness of the development of manufacturing industry.


I believe that with the success of a series of policies and measures, most enterprises will continue to stay in China for further development. But what kind of development path needs to follow closely the policy direction and make the correct strategic adjustment.


How to break the predicament and achieve industrial upgrading in small and medium sized enterprises


Every market fluctuation has tremendous opportunities for development. Market position and development gap often occur in the low market.


Nowadays, the textile industry is becoming more and more difficult to make, and the quantity of customers is less and less. Many countries may just listen to the propaganda and innovation of science and technology and industrial upgrading, but have not put it in place. They will feel that orders are getting smaller and smaller, customers are demanding higher and higher, and competition is becoming more and more intense, so it is difficult to do so.


The core of industrial upgrading is all around: improving efficiency, reducing costs and improving quality.


Why in the off-season, some enterprises continue to receive orders? That's because their products are able to attract customers. When many enterprises are still thinking about making large orders and mass production, they begin to consider the consumption pattern that should be followed, do fine and meticulous products for a certain region, satisfy the current consumers' boutique, personalized consumption mode, and adjust their industrial production chain, and have made the biggest profit.


Nowadays, the environment is not very ideal. Everyone is looking for a way out. They are trying to find a way, but before finding the train of thought and opportunity, what you need to do is to become the best screw in the industrial chain.